The spread between spot and contract truckload rates is unsustainable. The question is just how far and fast will they fall?
Backhaul markets are seeing more outbound volume, while traditional headhaul markets are beginning to see more inbound volume.
Markets in the Southeast, North and Midwest are experiencing an increase in outbound volume that some haven’t seen in almost a year.
Pittsburgh is experiencing a rise in both outbound and inbound tender volumes simultaneously.
Seattle, a traditional backhaul market, is now experiencing headhaul market activity.
Truckload spot rates have eroded dramatically since the start of the year while the bulk of the contracted market remained unscathed. That may be changing.
Outbound volumes are rising in Joliet but rejections are decreasing, pointing to a higher acceptance rate of contract loads.
Since the pandemic started, many shippers found their existing contracts unable to ensure carrier compliance. Supply and demand were especially volatile, and so spot rates, which are more sensitive to changing market conditions, handily outpaced contract rates.
Indianapolis’ outbound volume caused the Headhaul Index to increase 36.1% week over week, and outbound loads within 100 miles of the San Francisco market are being rejected as a result of protests.
Outbound tender volumes for Dallas begin to trend upward, and LA is beginning to see more lanes than usual under 250 miles.
FreightWaves announces a new Chief Revenue Officer and its Q2 earnings.
Outbound volumes for Philadelphia have increased while inbound loads decrease, which is not typical for this traditionally backhaul market.
Outbound reefer volumes for Milwaukee trend upward during the summer months more than others.
Knowing what the customer wants and when was once a relatively easy thing to predict. COVID has changed all that.
Outbound tender city volume in the Detroit market has boomed over the summer with no signs of slowing in the second half of the year.
In the nine days since July began, OTRI fell 141 basis points (bps) to its lowest level in over two years: 6.7%. In the three days following that bottom, OTRI clawed back 50 bps. At present, however, it seems as though any upward momentum upon which it could have built has been lost.
Pennsylvania markets see a drop in volumes but a rise in rejections. Booking volumes for imported maritime volumes are down 11%.
The Atlanta market is beginning to boom again after experiencing a significant dip during the recent holiday.
Import market share to LA and Long Beach remains high, but overall imports have decreased.
The recent AB5 ruling will make it difficult for regional operators to handle the ongoing short-haul and drayage demand in California.
